Accounting Changes and Errors: An Investigation of State and Local Government Reporting

• In Event: Government Financial Reporting Issues

Abstract

The study investigates factors associated with recognition of accounting changes, prior period adjustments, and accounting errors by government entities, as stipulated in GASB Statement No. 62, as reported in 275 randomly selected state and local government 2013 annual financial reports. These data and other factors are used to determine what changes are reported in the 2013 annual financial report, whether they differ by type of government, where they are reported, and what audit firms are used by governments for attestation work. This study adds to the literature by examining the implementation and reporting of GASB accounting guidance together with determinants found in previous research and their impact on financial reporting and auditing activities of states, counties, and municipal governments.

Authors

• Mary Fischer, University of Texas-Tyler

• Carol M Jessup, University of Illinois Springfield